Panasonic launches closed-loop recycling initiative in Japan

The goal is for Sumitomo Metal Mining to recycle nickel from battery scraps from the Panasonic Energy factory in Osaka, Japan. It will then be used as cathode material for new batteries produced there. This ‘battery-to-battery’ process is said to be “the first closed-loop recycling initiative […] in the production of automotive batteries by Panasonic Energy.”

According to the company’s press release, there are plans to extend the initiative to include other raw materials, such as lithium and cobalt. That will likely be the case “beyond 2026.” The statement also says that Panasonic Energy “has set the target of achieving 20% recycled cathode material content in its automotive batteries by 2027.”

The recycling will take place at Sumitomo Metal Mining’s Toyo Smelter & Refinery, and at its Niihama Nickel Refinery in Ehime prefecture, in which the company invested 47 billion yen (about 358 million euros) in 2021 to expand its cathode production capacities.

“Building a sustainable recycling scheme for end-of-life lithium-ion batteries is crucial for the future expansion of EVs,” says Kazuo Tadanobu, CEO of Panasonic Energy. “We are advancing initiatives in both Japan and the U.S., and through the partnership with Sumitomo Metal Mining, with its deep expertise in non-ferrous metal recycling, we are accelerating our efforts toward realizing a circular economy. This collaboration supports our mission of fostering a sustainable society.”

Panasonic signed a similar deal with Redwood Materials in 2022 in the US. The latter sources cathode materials and copper foil, which are then used by Panasonic at the Gigafactory 1 in Nevada, which is operated jointly with Tesla. The difference to the now-signed partnership in Japan is that the recycled material does not necessarily come from Panasonic batteries, which is why the new deal is the first closed-loop initiative for Panasonic.

panasonic.com (PDF)